Paris Airports Threaten Fee Hike for Airlines Amid Proposed Air Travel Tax

Groupe ADP, the operator of Paris airports including Charles de Gaulle, Orly, and Le Bourget, has issued a stern warning regarding the potential implementation of a new air travel tax by the French parliament. The proposed tax, aimed at funding environmental initiatives and curbing carbon emissions, could result in an additional charge of €1.50 to €18 per ticket, contingent on the destination and class of travel.

Groupe ADP has expressed deep concern, asserting that the tax could adversely affect its revenues, profitability, and the overall competitiveness and allure of the Parisian airport system. To counterbalance these impending financial challenges and uphold its investment plans, the operator indicates its willingness to adjust fees for airlines.

Moreover, Groupe ADP contends that the tax’s environmental goals may remain unmet, as it is unlikely to incentivize airlines to adopt more fuel-efficient aircraft or reduce emissions. Instead, the tax could divert passengers to other airports or alternative modes of transportation, potentially causing a decline in market share and employment within the French aviation sector.

This tax proposal, announced by the French government in July 2023, is anticipated to generate approximately €180 million annually starting in 2024. It is set to apply to all departing flights from France, excluding connecting flights, routes to Corsica and overseas territories, and certain flights mandated by public service obligations.

The aviation industry has vehemently opposed this tax, arguing that it may impede the recovery of air travel in the post-Covid-19 era and hinder the sector’s environmental sustainability endeavors. Furthermore, industry representatives contend that airlines in France already shoulder substantial taxes and fees, including the civil aviation tax, solidarity tax, airport tax, and participation in the European Union’s emissions trading system.

Sources: AirGuide Business airguide.info, msn.com, tripadvisor.com, easycdg.com